UK Bingo Firm Due a GBP25.9 Million Tax Refund

While it's not unusual for individuals and companies all over the world to enjoy tax refunds for overpaying on their taxes, what is unusual is the size of the tax refund leading UK bingo operation, the Rank Group, is owed by the UK government, namely a whopping £25.9 million.

The Rank Group, which owns a string of land and online bingo halls including Mecca Bingo, claims it is owed the enormous amount for overpaying on taxes on its gaming machines between 2002 and 2005. This week a tribunal ruled that HM Revenue & Customs must refund the Rank Group in full.

However, UK tax authorities are reportedly appealing the decision and the hearing is scheduled for April next year. However, subject to the appeal, the bingo firm is expected to receive its refund in the first quarter of 2010.

This comes at a time when the UK government is under fire from the gambling industry for its exorbitant taxes and levies. The country's bingo industry in particular is opposed to VAT and high gross profits tax, saying it is unfairly subjected to a higher tax rate compared to other forms of gambling.

But UK online betting companies have also been complaining about their high rate of taxation. In fact this year two of the UK's largest land and online gambling and betting concerns, William Hill and Ladbrokes, moved their headquarters out of the UK to the gambling-friendly jurisdiction The Isle of Man.

The Rank Group is a leading European gaming and betting company. Its businesses include a number of established brands in gaming and leisure. Mecca Bingo is one of the leading online bingo casinos in the UK and offers all manner of bingo games, clubs and promotions.